During the 16th century, the Portuguese captured Melaka to dominate the lucrative spice trade; other city states such as Aceh, Banten, Brunei and Pegu also sprung up by exporting and trading spices. However, I don't quite understand why spice trading is such a profitable venture as spices are quite expensive when they reach their terminal buyer. There are sayings that compare spices to gold
How did the high price of spices allow such high demand? Were the demands from the aristocrats capable of upholding and sustaining such high volumes of trade that enriched South Asian city states?
Assumptions:
I was under the impression that the European population was predominantly serfs during 15 and 16th century. The abolition of serfdom wasn't until the 18th century for most European powers, except England and France. This is precisely why I was confused as to how European buyers were capable of sustaining a demand for something that wasn't a necessity.
Were the aristocrats of the European powers wealthy enough to buy spices at the price similar to that of gold? And where did that wealth come from? I understand that high demand results in high prices, but there must be some kind of wealth that is sustaining that demand or else the price will drop until the demand reaches the supply.